HDFC Bank shares in focus: CEO Sashidhar Jagdishan decides not to seek reappointment; key details to know

Shares of HDFC Bank are likely to remain in focus on Monday, August 31, after Managing Director & Chief Executive Officer (MD & CEO) Sashidhar Jagdishan conveyed his decision to the board on Saturday not to seek reappointment to the top post.

At its meeting held on August 29, 2026, the Board of Directors took note of Jagdishan’s communication. Despite the board’s persuasion, Jagdishan reiterated his decision not to seek reappointment.

“Accordingly, he shall retire from the services of the Bank upon the close of business hours on October 26, 2026,” HDFC Bank said in an exchange filing.

"The Board deeply appreciated his commitment, leadership, contribution to the growth and stability of the Bank, and his role in the successful completion of one of the largest mergers in corporate India. The Board conveyed its best wishes to him in his future endeavors," it said.

The filing added that the board decided to fast-track the process for selection and appointment of his successor well within time.

Key details for market participants

Jagdishan, 61, will retire from the bank on October 26 after spending nearly three decades at the lender.

After taking over as the bank CEO in October 2020, Jagdishan is serving his second three-year term as the lender's head.

Jagdishan took over as the CEO of the bank from Aditya Puri, who had led the bank since its founding in 1995.

Within months, it announced the merger of its mortgage major parent, HDFC, with itself, leading to huge expansion in the asset book and worries over business performance, HDFC liability payouts and compressed net interest margins of the combined entity.

The management, however, said the merger will accrue benefits over the long term.

The issue of Jagdishan's reappointment has been a subject of intense speculation, especially after the surprising resignation of non-executive chairman Atanu Chakraborty in March this year, citing concerns on ethics and governance practices at the lender.

Key issues

In late July, the bank board found shortcomings in the deposit arrangements with the Maharashtra State Road Development Corporation (MSRDC) and also slapped a fine of ₹1 lakh each on Jagdishan and other key executives, even though it said that their actions were not mala fide.

It was alleged that the bank paid, over and above the card rate, for getting high-value deposits from the state-run body and routed them as marketing spends.

Besides, the bank has also faced allegations of mis-selling Credit Suisse's AT-1 bonds to diaspora clients from its Dubai DIFC branch, which led the local regulator to prohibit the bank from onboarding new customers or conducting new business last year.

Atanu Chakraborty's sudden exit

The latest development comes months after the abrupt exit of Atanu Chakraborty as HDFC Bank’s part-time chairman and independent director in March.

Chakraborty, who resigned with immediate effect on March 18, 2026, had said his decision stemmed from a growing mismatch between his views on values and ethics and certain practices at the bank.

Among the issues he had flagged were the alleged mis-selling of Additional Tier-I (AT1) bonds in Dubai, subdued credit growth, weak CASA deposits, the bank’s share-price performance and a high cost-to-income ratio.

His resignation had triggered a broader governance debate at the lender, particularly around the board’s oversight and the reappointment of Jagdishan.

HDFC Bank subsequently commissioned an external legal review into the concerns raised in Chakraborty’s resignation letter.

The review, concluded in June, found no evidence supporting the concerns raised in the letter, according to the bank.

In an interview after his sudden exit, Chakraborty rued that the bank did not act in time in the AT-1 bonds case, and compensation practices have to be in sync with value systems to ensure that any mis-selling does not happen.

There have also been reports of non-resident Indians being stuck with over $100 million in investments in a platform floated by Carlisle Asset Management sold as a high-yield product, but clients are unable to redeem their investments.

Other details

During his tenure, Jagdishan had also faced allegations of graft in the Lilavati Hospitals matter, which was eventually dismissed by the Bombay High Court.

The RBI imposed an 'embargo' on HDFC Bank in December 2020, prohibiting the bank from sourcing any new credit cards and launching new digital initiatives due to recurring technology system outages.

The management under Jagdishan ensured that the embargo was completely lifted in 15 months.

HDFC Bank share price trend

Shares of HDFC Bank have remained under pressure for an extended period, with the stock significantly underperforming the broader market.

The stock has declined 1.67% over the past five sessions, 4.57% in the last month, more than 18% over the past six months, and around 27.5% so far in 2026. Over the past 12 months, the stock has lost more than 24%.

The weakness has also extended over a longer time frame. HDFC Bank shares are down nearly 9% over the past five years, highlighting the prolonged period of subdued returns for investors.

The stock closed at ₹719.50, up 1.20% from the previous session's close on the NSE on August 28, 2026, after hitting a fresh multi-year low earlier in the week amid concerns around leadership succession, legal issues, and corporate governance.